PUMA "neutral," target price reduced

08.05.08 - J.P. Morgan Securities

LONDON, May 8 (newratings.com) - Analysts at JP Morgan maintain their "neutral" rating on PUMA AG (PUM), while reducing their estimates for the company. The target price has been reduced from ?281 to ?269.

In a research note published this morning, the analysts mention that the company has neither reconfirmed its EBIT growth expectations nor revised its sales growth guidance for FY08, citing tough macro economic conditions and the sustained high SGA spend. The company has announced that it has no plans to speed up the buyout of is minorities. The EPS estimates for FY08 and FY09 have been reduced from ?17.90 to ?17.17 and from ?21.38 to ?20.48, respectively.